LAWRENCE, Kan. -- An agreement recently signed to sell 62.5 million bushels of American wheat to Taiwan is great news for Kansas farmers.
Taiwan Flour Mills Association has agreed to buy the hard red winter wheat in 2010 and 2011. The exact source of the grain isn't specified, but the Kansas Department of Commerce says all of it will come from Kansas.
The value of the wheat was set at $425 million. Doing the math, that amounts to $6.80 per bushel of wheat, which is well above the $3.89 per bushel being paid at local elevators. Low demand has resulted in overflowing elevators across the state, which are still hold-ing wheat as the fall crops start to come in.
The pact signed may not help much with prices right away, but it's good to know that high-quality Kansas wheat still is a desirable commodity for international buyers such as those in Taiwan.
